Acc prepare a pension worksheet for the pension plan 2014

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Reference no: EM13815239

On January 1, 2014, Harrington Company has the following defined benefit pension plan balances.

Projected benefit obligation $4,500,000

Fair value of plan assets 4,200,000

The interest (settlement) rate applicable to the plan is10%On January 1, 2015, the company amends its pension agreement so that service costs of$500,000 are created. Other data related to the pension plan are as follows:

2012 2013

Service costs $150,000 $180,000

Prior service costs amortization 0 90,000

Contributions (funding) to the plan 240,000 285,000

Benefits paid 200,000 280,000

Actual return on plan assets 252,000 260,000

Expected rate of return on assets 6% 8%

Requirements:

(A) Prepare a pension worksheet for the pension plan for 2014 and 2015.

(B) For 2015, prepare the journal entry to record pension-related amounts.

Reference no: EM13815239

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